Topic
Analysis of Risks and Opportunities in Chinese Time-share Car Markets in 2017
Instructions
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The timeshare cars culture has been growing across the world in the past few years, as consumers resort to renting and sharing cars, rather than owning their own cars. Perhaps nowhere is such a practice more popular than in China, one of the most populous countries in the world. This study sought to gather qualitative data and answer the following question; what are the specific risks and challenges that exist in China’s timeshare cars market, and what opportunities can existing businesses such as Didi Chuxing and new entrants exploit to realize sustainable growth? The purpose of the present investigation was to examine the Chinese timeshare car business environment in view of Didi Chuxing, with the aim of discovering and reporting the actual opportunities for growth (positive attributes of the market), as well as the threats and challenges that are characteristic of the market. The researcher used a qualitative research methodology, based on a single case study on Didi Chuxing. Primary, qualitative data were collected using close-ended online questionnaires, from a sample of 112 respondents. The analysis of the qualitative responses revealed that the Chinese timeshare cars market is characterized by multiple opportunities and prospects, namely an expanding middle class, friendly government policies, acceptance of the timeshare culture by Chinese people, and demand for the timeshare cars services in China. The challenges that were discovered include capital shortages for smaller companies, lack of economies of scale, stiff competition from established companies such as Didi, as well as market uncertainty, considering that it is still at its infant stages. It is imperative that Didi and other companies develop strategic business strategies and models to capitalize on the said opportunities, and overcome the challenges, so as to realize sustainable competitiveness and success in the market. The growth in market demand and a favorable political and business environment imply that the Chinese timeshare cars market has a positive future outlook.
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